Information Technology and Competitiveness: Evidence from Micro, Small and Medium Enterprise Survey in Cimahi District, Indonesia

Maman Setiawan (), Rina Indiastuti () and Peggie Destevanie ()
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Rina Indiastuti: Faculty of Economics and Business, University of Padjadjaran
Peggie Destevanie: Faculty of Economics and Business, University of Padjadjaran

No 201401, Working Papers in Economics and Development Studies (WoPEDS) from Department of Economics, Padjadjaran University

Abstract: This paper investigates the role of information technology in its contribution toward the competitiveness of micro, small and medium enterprises. The data used in the analysis is based on a survey of micro, small and medium enterprises in Cimahi District, West Java Province, Indonesia. Variables to measure the degree of adoption of information technology, competitiveness, and other control latent variables are constructed by Factor Analysis using various relevant indicators. Path Analysis is also undertaken to investigate the effect of the adoption of information technology on competitiveness. It found that there is a lack of use of information technologies among the micro, small and medium enterprises surveyed. The information technologies are used for some purposes such as administration, marketing, production, and other activities related to the business. We also found the adoption of information technology has a positive contribution to competitiveness.

Keywords: competitiveness; micro, small and medium enterprises; information technology; path analysis; factor analysis (search for similar items in EconPapers)
JEL-codes: O0 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014-02, Revised 2014-02
New Economics Papers: this item is included in nep-cse, nep-ict, nep-knm, nep-sbm, nep-sea and nep-sog
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